Here’s what we think is coming over the next week…
Did you see that coming? Because we didn’t… but we were ready for it.
What a wild week. After three months of noise, chop, and fakeouts, the market is now right back at new all-time highs. Did anyone truly see that coming? Probably not. But if you’ve been following this newsletter, you know we stayed generally bullish, even when sentiment was at its worst.
When everyone’s bearish, you stay bullish. That’s been the call. And it’s working.
Risk Appetite Is Back
So just like when everyone’s bearish you stay bullish, we also need to be cognizant. The chart below shows risk appetite turning back on. Instead of retreating from risk, the market is leaning into it again. That could mean some surprisingly bright days ahead… yes, even now.
Not EVERYTHING is going to work anymore. We might very well be back to a stock picker’s market if you want alpha. But there is still a lot of juice left to squeeze on certain …